Rs 3,651-crore Tax Refunds to Industry in Past 4 Years: The Tribune India

Nitin Jain

Tribune press service

Ludhiana, October 30

The industry has received tax refunds amounting to Rs3,651 crore in the state over the past four years, the government has confirmed.

Refunds included the rebate of the State Net Goods and Services Tax (SGST) and Value Added Tax (VAT) to promote trade and industry, in addition to attracting new investment in the industry. Border state, officials said.

HEAD OF MINISTERS

Our effort is to provide maximum support and benefits to trade and industry so that Punjab continues to attract investment in high-tech sectors and become the best destination for business promotion. The government will continue to expand the existing benefits, in addition to considering more measures for the industry depending on the demand and possibility factors. —Charanjit Singh Channi, Chief Minister

The Managing Director (CEO) of Invest Punjab, the unified state government one-stop-shop regulator controlling 23 different departments to provide advanced one-stop facilitation to investors, Rajat Agarwal said today that SGST refunds have hit a new high of 1,171 crore rupees in the current fiscal year through August.

In previous years, the industry has obtained refunds of Rs838 crore SGST and Rs332 crore of VAT, refunds of Rs780 crore SGST in 2019-2020 and refunds of Rs530 crore SGST in 2018-19.

As part of its policy to provide tax incentives to industry, including MSMEs and large units in high-tech sectors, the state government has offered investment subsidies in the form of reimbursement of the net SGST on intrastate sales.

In addition to 100 percent of SGST’s net repayment for 10 years with a cap of 125 percent of fixed capital investment (FCI), the industry also benefited from full exemption from electricity duties for 10 years, d ” 100 percent stamp duty exemption / refund on purchase or rental of land and construction, full exemption from CLU / EDC and property tax for 10 years.

In addition, special sector-specific incentives for industrial units in high-tech sectors were also extended, which included reimbursement of market costs, rural development costs, other state taxes and material costs. raw materials for food processing industries, 100% reimbursement of all taxes and fees paid for the purchase of raw materials for food processing units up to 10 years for all categories of units, a additional support to units under the Centre’s M-SIPS program, an additional 50% of the Capex support provided by the Center to units setting up in Electronic Clusters (CEM) notified under the M-SIPS system.

As part of the central support system, the benefit was provided to the first 10 anchor units limited to a maximum of Rs10 crore per unit.

In addition, additional support was extended to industrial units under the Centre’s Modified Technology Upgrading Fund (A-TUF) program, which includes a 5 percent interest rate subsidy for MSMEs for new ones. / expansion / diversification in addition to benefits under A-TUF. for clothing, clothing and technical textiles for 3 years subject to a maximum of Rs10 lakh per year.

By extending the capital grant to IT / ITES units, the government was providing 50 percent of the FCI subject to a cap of Rs2.5 crore per unit.

Likewise, the tourism and hospitality industry was granted 100% exemption from the entertainment tax for all new investments in special theme parks, amusement parks, water parks, adventure parks, film tourism such as film institute, film city, film studio, theaters and mini-theaters. .

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